THE PORT AUTHORITY OF NY & NJ

Press Release Article


LEADING AUTOMAKER TO SIGN LEASE WITH PORT AUTHORITY TO CREATE NORTHEAST HUB AT PORT OF NEW YORK/NEW JERSEY

Date: Mar 18, 2002
Press Release Number: 22-2002

Toyota Plans to Consolidate Mid-Atlantic and Northeast Operations at Port Newark

The Port of New York and New Jersey will become the Northeast hub for Toyota Motor Sales, U.S.A., Inc., under an agreement reached between the Port Authority and the giant auto manufacturer. The agreement, approved by the Port Authority Board of Commissioners, was announced today by Port Authority Chairman Jack G. Sinagra.

Under a 15-year lease, Toyota will consolidate its mid-Atlantic and Northeast operations at Port Newark beginning in November 2003 when its existing lease expires in the Port of Baltimore. Toyota has operated an auto processing facility at Port Newark since 1976, which supports 168 jobs.

New Jersey Governor James E. McGreevey said, “The port has been a significant foundation of economic stimulation. Our combined workforce in the port secures more than 225,000 jobs. The port also contributes more than $20 billion to the economy, which demonstrates that this region offers large and affluent markets a highly trained workforce and other advantages no other region can match.”

Port Authority Chairman Sinagra said, “This lease is a home run for our port. It shows that our investments – such as improved road and rail access and channel- deepening projects – have made the Port of New York and New Jersey an attractive place for shippers and manufacturers from around the world.”

Port Authority Executive Director Joseph J. Seymour said, “Our cargo volumes are increasing and our market share is growing. This is a testament to our successful efforts to retain the existing world-class tenants in our port and to attract new ones. With the signing of this lease with a major international company and the recent signing of 30-year leases by major container terminal operators, we believe that the high level of activity at our ports will continue to grow.”

Toyota Logistics Services Vice President Jim Byers said, “Increasing North American vehicle production and more direct shipment from plant to dealers is a major reason for Toyota’s decision to consolidate mid-Atlantic and Northeast port operations at Port Newark for the handing of import vehicles. These network changes will permit Toyota to deliver vehicles to its dealers more expeditiously while keeping transportation costs in check. This bodes well for dealers and consumers alike.”

Port Commerce Director Richard M. Larrabee said Toyota shipped 117,500 vehicles through Port Newark last year, about 20 percent of the total vehicles processed there. The automaker shipped an additional 42,500 vehicles through the Port of Baltimore, Mr. Larrabee said.

Toyota now occupies 89 acres of property at Port Newark under a lease that expires in October 2006. The new lease will replace the existing one and will continue until October 2018. Toyota has agreed to improve its existing auto processing center.